Did you know that you’re allowed to work while collecting Social Security retirement benefits? Whether or not your paycheck affects the amount of your Social Security depends on your age. When it comes to determining whether your benefits are affected, the government takes a three-tiered approach:
- Before You Reach Full Retirement Age. If you haven’t yet reached full retirement age (the range is from 65 to 67, depending on your year of birth), then earning too much money will result in a reduction of benefits. For 2010, you’re allowed to earn $14,260 before you’ll see a reduction in your social security check. For every $2 you earn over this limit, the social security administration will subtract $1 from your retirement benefits.
- The Year You Reach Full Retirement Age. In the year you reach full retirement age, the income limit still applies, but exceeding it has less of an effect on your retirement benefits. For every $3 you earn over the annual limit, the social security administration will subtract $1 from your benefits.
- After You Reach Full Retirement Age. After you’ve reached full retirement age, you can earn as you want, with no reduction in benefits.
To determine your full retirement age, you can visit www.ssa.gov.
Mr. Stephen Mendel is an attorney who focuses a substantial part of his practice on estate planning. Mr. Mendel’s guiding principle is to provide his clients with quality legal services tailored to each client’s specific needs and goals.
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